The big three bond-rating agencies in New York City are expected to hold teleconference calls with Maryland officials today to help determine how they?ll rate the July 16 bond sale.
Treasurer Nancy Kopp, a longtime delegate first elected to state treasurer by the legislature in 2002, oversees the sale.
Why is Maryland?s triple A bond rating so important?
It does allow us to get a slightly lower interest rate ? some millions of dollars less overall than we would pay otherwise. That impacts all the other state agencies and local governments as well. The triple A rating is taken as an indication of good fiscal management, not just by the bond-rating houses and investors,but by companies considering locating here.
How did we get such a rating?
The reasons we have a triple A bond rating include the good management practices of the state, capital debt affordability process, the [constitutionally] strong governor, the whole governmental process. But really more than that, we have a well-balanced economy and we have a well-trained labor force ? and they mention this.
What are the analysts most concerned about?
Is the economy as strong as it was? Are we on top of where the economy is and can we react quickly? And in fact we have. They point out that Maryland not just right now, but in the past has reacted well and tightened its belt when it had to.
What do they want to know about today?
They?ve sent us some questions. They do want to know about the state of the economy, about what?s happening with the housing market in Maryland, about what happens if slots don?t pass. How are we prepared to react in terms of the budget? Their bottom line is they want to know that the bond holders will be paid back.
